What is an Investment Manager?

An investment manager’s job is to adhere to the guidelines set forth in a prospectus while directing the decision-making process for a pooled investment company such as a mutual fund.

He must remain accountable to the shareholders and observe SEC regulations while attempting to generate the best returns possible. Investment managers direct the flow of assets and trading in an investment account, usually a pooled investment using the funds of various numbers of investors, while seeking to serve the best interests of the investors whom he serves.

Investment managers may be found running mutual funds, hedge funds, pension funds, and other large accounts. Sometimes the hometown investment adviser will manage a fund on behalf of his clients. SEC regulations, among others, stipulate the code of conduct and reporting requirements expected of investment managers.

Investment managers sometimes work in teams and direct a large group of employees that may consist of analysts, traders, and other useful roles. They can have many licenses and designations, but the primary determinants of whether someone gets an investment manager job will have a lot to do with experience and past success in the market.

What is a Hedge Fund?
Who is an Account Manager?